Internal Revenue Bulletin: 2011-23 |
June 6, 2011 |
Table of Contents
- T.D. 9525
- Rev. Rul. 2011-13
- T.D. 9524
- AGENCY:
- ACTION:
- SUMMARY:
- DATES:
- FOR FURTHER INFORMATION CONTACT:
- SUPPLEMENTARY INFORMATION:
- Background
- Summary of Comments and Explanation of Provisions
- I. Government Entities Subject to Section 3402(t)
- A. Exception for political subdivisions and instrumentalities making total payments under $100,000,000 (section 3402(t)(2)(G))
- B. Determining whether an organization is an instrumentality
- II. Payments Subject to Section 3402(t) Withholding
- A. Payments by credit card or other payment card
- B. The $10,000 payment threshold
- 1. Amount of Payment Threshold
- 2. Application of the Payment Threshold to Individual Payments
- 3. Application of the Payment Threshold to Multiple Payments to the Same Recipient
- 4. Application of the Payment Threshold to a Single Payment Covering Multiple Billing Items
- C. Payments to contractors, subcontractors, and payment administrators
- D. Advance and interim payments
- E. Utility payments
- F. Other payments
- III. Payments Excepted from the Section 3402(t) Withholding Requirements
- A. Payments to certain exempt payees (section 3402(t)(2)(E))
- B. Payments to Indian tribal governments
- C. Identifying exempt payees
- D. Payments of interest (section 3402(t)(2)(C))
- E. Payments for real property (section 3402(t)(2)(D))
- 1. Construction Payments
- 2. Lease Payments
- F. Payments subject to other withholding (section 3402(t)(2)(A) and (B))
- G. Payments made pursuant to a classified or confidential contract (section 3402(t)(2)(F)).
- H. Payments in connection with a public welfare or public assistance plan (section 3402(t)(2)(H))
- I. Payments to a government employee for services as an employee (section 3402(t)(2)(l))
- J. Grants
- K. Sales tax, excise tax, and value-added tax
- L. Loan guarantees
- M. Debt repayments and stock and bond purchases
- IV. Application of Section 3402(t) to Passthrough Entities
- V. Deposits and Reporting of Amounts Withheld Under Section 3402(t)
- VI. Crediting of Amounts Withheld
- A. Credit against income tax
- B. Credit against estimated income tax liability
- C. Credit against employment taxes or other taxes
- D. Credits for amounts withheld on payments to passthrough entities
- VII. Correction of Errors and Liability of Government Entity
- A. Corrections of overwithholding and underwithholding
- B. Application of the $10,000 threshold to corrections of erroneous payments
- VIII. Extension of Applicability Date and Transition Relief for Existing Contracts
- IX. Transition Rule for Interest and Penalties on Underpayments
- Effective/Applicability Date
- Special Analyses
- Adoption of Amendments to the Regulations
- Drafting Information
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